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Onchain Economics

DeFi Lending Calculator

Calculate your lending position's health factor, liquidation price, and net yield using live data from DefiLlama.

Position Setup

Current ETH Price

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ETH

Value: $0.00

$
%

Default for ETH: 82.5% (Aave V3)

Yield Settings

%
%

Health Factor

0.00

Liquidatable

Current LTV

0.0%

Max: 82.5%

Liquidation Price

$1212.12

0.0% drop

Yield Summary (365 days)

Supply Yield+$0.00
Borrow Cost-$500.00
Net Yield-$500.00
Annualized Net APY+0.00%

Position Summary

Collateral Value$0.00
Borrowed$10.00K
Net Equity$-10000.00

Live Data: Prices and yields from DefiLlama. Click on a lending pool to apply its rates.

Understanding DeFi Lending Metrics

Health Factor

The Health Factor (HF) measures the safety of your collateralized loan. It represents how far your position is from liquidation:

Health Factor = (Collateral Value × Liquidation Threshold) / Borrowed Amount
  • HF > 2: Very safe position with significant buffer
  • HF 1.5–2: Safe position, but monitor during volatility
  • HF 1.2–1.5: Moderate risk, consider adding collateral
  • HF 1–1.2: High risk, immediate action recommended
  • HF < 1: Position is liquidatable

Liquidation Price

The Liquidation Price is the price at which your collateral will be liquidated:

Liquidation Price = Borrowed Amount / (Collateral Amount × Liquidation Threshold)

When the collateral price falls to this level, liquidators can repay your debt and claim your collateral (usually with a bonus).

Liquidation Threshold

The Liquidation Threshold (LT) is the maximum loan-to-value ratio before liquidation. Different assets have different thresholds based on their volatility:

  • ETH: ~82.5% (less volatile, higher threshold)
  • WBTC: ~75% (bridged asset, moderate threshold)
  • Altcoins: ~65% (more volatile, lower threshold)

Net APY Calculation

Your Net APY combines the yield earned on supplied collateral minus the interest paid on borrowed assets:

Net APY = (Supply Yield - Borrow Cost) / Collateral Value × 365 / Days

Risk Management Tips

  • Maintain a health factor above 1.5 during normal conditions, higher during volatile markets
  • Set price alerts near your liquidation price to take action before liquidation
  • Consider the spread between supply and borrow APY—negative net yield means you're paying to borrow
  • Stablecoin collateral eliminates liquidation risk from price volatility
  • Some protocols offer liquidation protection or self-repaying loans

Related Tools

Live rates sourced from DefiLlama. Rates change frequently based on market conditions.